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Ukraine's new regulations on troubled banks go into effect

The Ukrainian government enacted laws and regulations for troubled banks at the end of 2014 that have gone into effect, the U.S.–Ukraine Business Council (USUBC) said on Monday.

Under the law, "On the Measures to Facilitate the Capitalization and Restructuring of Banks," there have been improvements made to the capitalization process that allow for an expedited process, such as mandating a shorter period of time for transactions, such as fund transfers for purchased shares, and concluding agreements by the second business day.

The law also stipulates that vulnerable banks can bypass some regulations set by Ukraine law, such as the requirement that they notify creditors and liquidate some assets when available capital falls below a certain amount.

The law gives the National Bank of Ukraine extended authority to step in and take action that is beneficial to the banking sector, including the ability to establish liquidity support measures and to restrict and prohibit withdrawals and foreign currency transactions.